What's the Point in leasing on to a company like Landstar??

Who does your paperwork? If you don't mind if I ask.

 

You can do that, run your own authority with Landstar. But look at what the loads pay. if your leased to Landstar then the loads you get are pre-broker.
if you are not leased to them then you have to pay a broker fee and that can be as much as 60% of the load.

 

Here's the skinny on LS leased and LS broker. Agents get paid 7% of linehaul if a LS truck pulls it. If the agent 'brokers' the load, LS keeps 13% off the top, the rest belongs to the agent, less whatever he can get some 'qualified carrier' aka 'poor schmuck' to haul it for. Guess who the agent is more motivated (financially) to load? You got it...the guy with the blue star sits or is told "Oh, I'm sorry, that load cancelled". LS does provide lots of freedom, and if u have your regular agents u haul for, can be a great lease, but the 'qualified carrier' within the LS system will always be your biggest competitor.

 

Load paying $1000:

bco sees $720
agent sees $70
LS keeps $210

Approved carrier sees: $770
agent sees: $100
LS sees: $130

So that "poor schmuck" can make 5% more than the bco & the agent still gets more money...

 

Not sure where you guys get the idea on some of these numbers i know few people that lease to landstar and there are fees on top of fees, i have hauled Landstar loads for as much as $4 a mile on 800-1000 miles, neesflash brokers dont always make money on loads they also lose hundreds on them because if the load has to go in order to keep that customer happy they will lose money if necessary. You're way better off by being independent than to be under someone, the guy up here says they may only put up 7000 loads on the load board thats very true but there are few other brokers with their 7000 loads which willfar eexceed the 20000 you mentioned. I run two brand new volvos and two brand new utility trailers, i would be broke 3 weeks later if i was to lease to someone lile landstar, however i make very good living. My two cents guys get your own trailer, pay your own diesel, do your own IFTA because lets be honest you're being charged for all that somewhere down the line

 

That is one possibility, although the exception to the rule. Not needing to stir the pot, I'm just saying that if a guy wants the additional liabilty and cargo insurance cost, along with the exposure and headaches that go with having your own authority (which I did for years) then that potential, and I stress potential, 5% revenue may not look that great to a lot of folks. I have been a LS agent and a LS BCO, so I do have a good idea that what works for some, may not work for others.

 

And what I really mean to say is this: Some guys do great with a permanent lease, but generally, the real success stories I've seen in 35+ yrs of this industry are the guys (or gals) who develop and maintain a direct Bill customer base. I would NEVER rely on brokers or agents or any 3PL provider to build my business around. Just my unsolicited opinion, ok?

 

Everyone that wants to be a success in the business has to find what business model will work for them.I've never been a paperwork person,decided a long time ago to give up the 25% and not have the headaches.There are advantages/disadvantages both ways,just my decision.I have always been leased to a carrier with my own truck and trailer since 1974.I've been in specialized my whole career,and have always looked for that little advantage over the other guy.And I've always tried to truck smart,not hard,has worked well for me.Only work a couple of days a month anymore on a profitable haul,could retire at any time.Just can't get this trucking out of my blood,though,lol.
Also,I'm on an old contract with Landstar,74.5 %,every little bit helps!

 

I'm not crazy about the trucking business, but I love big trucks!

 

There's quite few accounts here at LS where only an LS truck is allowed to pull the freight. No outside carriers.

I don't understand why folks at LS cry about brokered freight. Majority of the stuff that goes to approved carriers are junk that just sit around on our board. They'll get a higher rate but they have other costs that we don't such as cargo insurances and authority...